Directive 491.1 

4/26/74 

 ACTION BY: All Divisions and Offices 

 Settlement of Claims for Unpaid Compensation 

 Due Deceased Employees 

 I PURPOSE 

 This Instruction: 

 A Provides information on claims for unpaid compensation due deceased 

 employees, and 

 B Explains how to process such claims to the National Finance Center 

 (NFC) for settlement. 

 II AUTHORITY 

 The authority for settlement of claims for unpaid compensation due deceased 

 employees, as contained in law, does not include: 

 A Amounts payable under the Civil Service Retirement Act and the 

 Federal Employees Group Life Insurance Act. 

 B The disposition of amounts which is otherwise prescribed by Federal 

 law. 

 III UNPAID COMPENSATION 

 Unpaid compensation means the pay, salary, allowance, or other compensation 

 due on account of the services of the deceased for the Federal Government. 

 it includes, but is not limited to: 

 A Per diem in lieu of subsistence, mileage, and other amounts due 

 in reimbursement of travel expenses. Also, incidental and miscellaneous 

 expenses incurred in connection with travel for which payment is due. 

 B Lump-sum payment for all accumulated and current accrued annual 

 leave to the employee's credit on the date of his death. This includes 

 accumulated annual leave brought forward at the beginning of the leave year 

 and annual leave accrued during the current leave year, less annual leave 

 used during the current leave year. 

 C Amounts due as refund of salary deductions for U.S. Savings Bonds. 

 D Overtime or premium pay. 

 E Allowances upon change of official station. 

 F Quarters and cost-of-living allowances. 

 G Amounts due for payment of cash awards for suggestions. 

 H Amounts of all checks drawn in payment of any types of compensation 

 described above which were not delivered to the deceased during his lifetime. 

 I Amounts of any unnegotiated checks returned to the Government 

 because of the death of the employee. 

 IV ORDER OF PRECEDENCE 

 Unpaid compensation shall be paid to the person or persons surviving at the 

 date of the employee's death in the following order of precedence. Such 

 payment shall be a bar to recovery by any other person of amounts so paid. 

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 A To the beneficiary or beneficiaries designated by the employee in 

 writing to receive such compensation. The designation must be on file with 

 AMS at the time of death. 

 B If there is no designated beneficiary, to the widow or widower of 

 the employee. 

 C If there is no beneficiary or spouse, to the child or children of 

 the employee, or descendants of deceased children, by representation. 

 D If none of the above, to the parents of the deceased or their 

 survivors. 

 E If none of the above, to the legal representative of the estate 

 of the deceased employee. If there be none, to the person or persons 

 determined to be entitled under the laws of the domicile of the deceased. 

 V DESIGNATION OF BENEFICIARY 

 A An employee may designate any person or persons as beneficiary by 

 completing SF-1152, Designation of Beneficiary - Unpaid Compensation of 

 Deceased Civilian Employee. (See AMS Instruction 340-2, Designation of 

 Beneficiaries.) Send completed SF-1152 to the Employee Relations and 

 Services Branch, Personnel (PE) Division. 

 B To be valid, the designation must be received by AMS before the 

 employee's death. 

 C Unless changed or revoked by the employee, the designation 

 remains in effect for the duration of employment by the Department. 

 A designation previously made may be changed or revoked by submitting 

 another SF-1152. 

 D If the employee resigns and is later reemployed, or is 

 transferred to another Department of the Government, and desires his unpaid 

 compensation in case of death to be paid to a designated beneficiary, 

 another SF-1152 must be filed. This is necessary even though the same 

 beneficiary is designated. 

 VI DEATH NOTIFICATION 

 Immediately upon notification of the death of an employee: 

 A The timekeeper shall: 

 1 Inform the Employee Relations and Services Branch, PE 

 Division, by telephone of the deceased employee's name and date of death. 

 2 Complete a Time and Attendance (T&A) Report to reflect 

 the employee's duty and leave status up through the date of death. 

 3 Send the T&A report to the contact point for forwarding 

 to the NFC. 

 B The contact point shall send the T&A report via airmail or 

 first class mail, whichever is normally used, to NFC with Form AD-342, 

 Transmittal - Time and Attendance Reports. 

 1 Place an "X" in the "Special" block of Item 13, Type of 

 Handling; and 

 2 Enter "Deceased Employee" in Item 14. 

 C The Cost Responsibility Center (CRC) shall: 

 1 Send to the Employee Relations and Services Branch, PE Division: 

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 a Form SF-52, Request for Personnel Action, terminating 

 the employee's appointment due to death. Enter in the 

 Remarks section the annual leave and compensatory leave 

 balances and the holiday and premium pay to which the 

 employee would have been entitled. (See AMS Instruction 

 333-2, Lump-Sum Annual Leave or Compensatory Time 

 Payments - Form AD-581.) 

 b Any undelivered checks drawn payable to the deceased. 

 c Any undelivered Savings Bonds with the name of the 

 deceased as sole owner. 

 d Approved vouchers for any other amounts due the 

 deceased. 

 e A copy of the last T&A Report showing the employee's 

 duty and leave status through the date of death. 

 2 Send to NFC Form AD-616, Travel Voucher, covering any 

 unclaimed travel expenses to which the deceased is entitled. 

 Enter "Traveler Deceased" in the claimant's signature block, and 

 "Special Handling Traveler Deceased" in Section A directly above 

 the deceased's name. 

 3 *-Notify the Fiscal Operations and Services Branch, Financial 

 Services (FS) Division, by telephone or wire, if the deceased employee was in

 an overdrawn leave situation or if he had unaccounted for items to which a 

 monetary value was placed (see AMS Instruction 442-1, Accountability 

 Clearance of Separating Employees).-* 

 D The Employee Relations and Services Branch, PE Division, shall 

 notify the NFC by telegram of the deceased employee's name, Social Security 

 number, and date of death. 

 VII SUBMISSION OF CLAIMS 

 The Employee Relations and Services Branch shall determine if unpaid 

 compensation is due the deceased. If amounts are due, that office shall 

 request each designated beneficiary, surviving spouse, and/or other claimants 

 to submit claims with a copy of the death certificate, as explained below. 

 The Branch shall also assist claimants, as necessary, to assure the proper 

 completion of all required forms. 

 A Each designated beneficiary, or surviving spouse if no beneficiary 

 was designated, shall submit SF-1153, Claim of Designated Beneficiary and/or 

 Surviving Spouse for Unpaid Compensation of Deceased Civilian Employee. 

 The names and signatures of the beneficiaries must be exactly as listed 

 on the SF-1152 prepared by the deceased. If a beneficiary's name has been 

 changed by marriage or court order since the time of designation, both the 

 former and present names must be shown. 

 B If there is no designated beneficiary or surviving spouse, the 

 person or persons claiming the right to share in the deceased 

 employee's unpaid compensation shall submit SF-1155, Claim for Unpaid 

 Compensation of Deceased Civilian Employee (No Designated Beneficiary or 

 Surviving Spouse). 

 c If a guardian or committee has been appointed for a minor or 

 incompetent who appears to be entitled to unpaid compensation, such guardian 

 or committee shall submit SF-1155. A certificate of the court showing 

 the appointment of the claimant to such capacity shall accompany the form. 

 D If no guardian or committee has been or will be appointed 

 for a minor or incompetent, the person who has care and custody 

 of the minor or incompetent shall submit SF-1155 and a statement 

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 which includes: 

 1 The claimant's relationship to the minor or 

 incompetent, if any; 

 2 The name and address of the person who has care and 

 custody of the minor or incompetent; 

 3 A provision that any moneys received will be applied to 

 the use and benefit of the minor or incompetent; and 

 4 A provision that the appointment of a guardian or 

 committee is not planned. 

 VIII UNNEGOTIATED AND UNDELIVERED GOVERNMENT CHECKS 

 The Employee Relations and Services Branch shall take the following 

 action regarding unnegotiated and undelivered Government checks. 

 A Return of Checks. Instruct the claimant to: 

 1 Return unnegotiated Government checks drawn to the 

 order of the deceased, whether from AMS or another agency in the Department 

 of Agriculture, and in the possession of the claimant to the Employee 

 Relations and Services Branch, PE Division, with the completed claim form. 

 2 Return unnegotiated Government checks drawn to the 

 order of the deceased from Agencies other than USDA to the 

 Agency from which received with a request for further instructions. 

 B Recording. Maintain a record of unnegotiated checks, which are 

 returned by claimants. 

 C Disposition. Forward undelivered and unnegotiated checks to NFC 

 for inclusion in final settlement. 

 IX TRANSMITTAL OF DOCUMENTS TO NFC 

 The Employee Relations and Service Branch shall airmail the completed claims 

 forms, along with the following documents, to NFC: 

 A SF-1152, if filed. 

 B Certified vouchers for any other amounts due the employee. 

 C Documentation for any cash awards due. 

 D Any unnegotiated or undelivered salary and travel reimbursement 

 checks drawn payable to the deceased. 

 E Any Savings Bonds inscribed in the name of the deceased as the sole 

 owner. 

 F Form AD-343, Payroll Action Request. In addition to the normally 

 required information include the accounting distribution data: 

 1 Applicable to the unnegotiated checks, and 

 2 For any lump-sum leave and/or compensatory time due the 

 deceased. 

 G A copy of the death certificate. 

 H SF-2800, Application for Death Benefit. 

 I SF-2810, Notice of Change in Health Benefit Enrollment. The form 

 shall show that either FEHBA coverage is to be terminated or that the enrollDirective 491.1 - Settlement of Claims for Unpaid Compensation Due Deceased Employees Page 4 of 5

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 ment is to be transferred to the Civil Service Commission when there is an 

 eligible survivor annuitant. 

 J SF-2809, Health Benefits Registration Form (from the personnel 

 folder), if the registration is to be transferred to the Civil Service 

 Commission. 

 Richard P. Bartlett, Jr. 

 Deputy Administrator, Management 

 

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